Bitcoin Price To Hit $70,000 With $485M BTC ETF Volume and Ethereum ETF Fuelling the Rally
After spending the last 24 hours wallowing in uncertainty, investors can breathe easy, seeing Bitcoin price regaining strength to attack the coveted $70,000 resistance.
Among the catalysts for the modest 0.8% growth to $67,130 is the launch of spot Ethereum ETFs. Following weeks of anticipation, the Securities and Exchange Commission (SEC) finally unleashed nine Ether ETFs for trading earlier today.
Despite a minor drop in the Bitcoin price trading volume to $39 billion, its market cap increased to $1.32 trillion. Bitcoin dominance has subsequently climbed to 54.5%, suggesting that altcoins are slacking.
Bitcoin Price Clears Path To $70,000 As Ethereum ETFs Launch
Nine spot Ether ETFs have gone live today triggering FOMO among traders. Ethereum price reacted with a modest 0.71% increase to $3,472.
According to a report by Kaiko, a data analytics company, Ethereum ETF operators “are jostling for dominance” by putting in place key strategies like waving fees on top of reduced long-term fees to attract investors.
Nine $ETH ETFs launched in the US today, similar to $BTC products issuers are jostling for dominance and have implement various waivers as well as low long-term fees to entice investors. pic.twitter.com/hOUY6bYuYJ
— Kaiko (@KaikoData) July 23, 2024
Blomberg’s ETF analyst Eric Balchunas with his update of the first 15 minutes of the ETF trading, said that the total volume had reached $112 million. Compared to normal ETF launches, this is no small feat. However, it is “only about half of what Bitcoin ETFs’ volume pace was on DAY ONE.”
Here's volume after first 15 minutes of trading. Total of $112m traded for the group (which is A TON vs a normal ETF launch but only about half of what bitcoin ETFs' volume pace was on DAY ONE, altho 50% would exceed expectations IMO). Also Bitwise outperforming early. pic.twitter.com/RoN9J1VoP1
— Eric Balchunas (@EricBalchunas) July 23, 2024
Bitcoin ETFs have continued to perform above expectations, especially in the last couple of weeks with the total daily net inflow averaging at half a billion for two consecutive days, data by SoSoValue shows.
BlackRock’s IBIT ETF recorded inflows of $526 million followed by Fidelity’s FBTC’s $23 million. After months of persistent withdrawals, Grayscale’s GBTC recorded net zero flows on Monday. Bitcoin ETFs currently boast a cumulative total net inflow of $7.54 billion.
Bitcoin Defends $67,000 Support, What’s Next?
BTC price is moving within the confines of an ascending channel on the four-hour chart. On the other hand, bulls are trying to capitalize on ETH ETFs’ launch to chart the way to $70,000.
The 20-day Exponential Moving Average (EMA) may be holding bulls from achieving their goal of tagging $70,000 this week. A daily close above this indicator is required to reduce the bearish impact on Bitcoin price.
According to the prevailing Bitcoin price forecast, sideways trading may take place between $66,000 support and $68,000 resistance. A break on either side of this range would determine if Bitcoin starts the bullish phase above $70,000 or seeks refuge at $64,000.
The sell signal displayed by Moving Average Convergence Divergence (MACD) further backs the potential correction to seek liquidity at $64,000 before resuming the uptrend above $70,000.
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